This is sort of like AirbnB, but in a restaurant sort of way. People sign up through EatWith which is a service designed to vet hosts/chefs and potential diners. Diners are paired with chefs based upon what sort experience or cuisine they are looking for. Some are locals looking for a culinary adventure, others are people vacationing who are looking for a home cooked meal experience. The result is a "pop-up" party at the host's house. People pay around $60 per person for the meal, depending on its cost and complication. It's also a way for ordinary people to show of their culinary skills.
The impact on a residential area where these would take place is about the same as someone having a dinner party at their home. Click here for the Miami Herald article.